bcm_2333@hk_072815_14130

28 July 2015

Focus of the Day

Download our reports from Bloomberg: BOCMenter

Morning Express

Sohu (SOHU.US)

Stock

BUY

LTBUYNeutral

SELL2Q15 top-line and bottom-line beat

Yuan MA [email protected]

Last Closing: US$67.54 Target Price: US$61.40

Sohus 2Q15 top-line and bottom-line beat. Mobile ad revenue contributed over 50% of

media portal ad revenue. The growth of Sohus video business slowed down due to the

macro environment and policy regarding American TV dramas. Sogou revenue continued

strong growth momentum, up 62%/27% YoY/QoQ to US$147mn. Game revenue was

higher than expectation, while the newly launched games missed expectation. Given the

strength of Sogous business, we lift Sogous 2015E/2016E revenue by 5%/4%, partially

offset by our higher estimate of SBC of Sogou. We also cut game revenue for 2015E by

5% as we are conservative on the mobile game pipeline, offset by lower operating

expenses. We lower Sohus 2015E revenue estimate by 3%, and fine-tune 2015E

non-GAAP net loss per ADS from US$2.31 to US$2.25 as our lower estimate of spending

offsets the decrease in revenue estimate. We fine-tune TP from US$60.33 to US$61.40

and maintain Neutral.

CT Environmental Group (1363.HK/2919.HK)

SELL

NeutralLT

BUY

BUY

Stock

Expecting >50% YoY growth in 1H15 net profit;

maintain Buy

Wallace CHENG [email protected]

Last Closing: HK$2.65 Upside: +36% Target Price: HK$3.60

CTEG posted a positive profit alert for 1H15 interim results, expecting not less than 50%

YoY growth in net profit, i.e. not less than HK$267m net profit during the period. The

positive profit alert is in line with our expectation as the estimated 1H15 net profit

already accounts for 41% of our full year net profit estimate of HK$641m in 2015.

The substantial rise in 1H15 was a result of: (1) full period (i.e. 6 months) contribution

from Yinglong Phase 1 (IWWT) and Qingyuan Lvyou (sludge) projects in 2015 vs ~1 month

contribution from these 2 projects in 1H14; (2) full period contribution from IWWT and

water supply projects in Shunde and Zhongshan (secured in 2H14); (3) contribution from

new copper etching projects and operation management contract from Guangzhou Lvyou

(secured in 1H15); and (4) improved utilization rates of the existing projects.

Indices Close 1d % Ytd % HSI 24,352 -3.09 3.16 H Shares 11,231 -3.84 -6.29 SH A 3,903 -8.48 15.17 SH B 341 -8.21 17.43 SZ A 2,260 -7.00 52.87 SZ B 1,204 -6.58 17.08 DJIA 17,441 -0.73 -2.15 S&P 500 2,068 -0.58 0.42 Nasdaq 5,040 -0.96 6.41 FTSE 6,505 -1.13 -0.93 CAC 4,928 -2.57 15.33 DAX 11,056 -2.56 12.76

Source: Bloomberg

Indicators Close 3m % Ytd %

Brent 53.47 -17.52 -6.73 Gold 1,094.18 -9.73 -7.65 Silver 14.58 -12.40 -7.15 Copper 5,188.00 -14.46 -17.65 JPY 123.26 -3.57 -2.82 GBP 1.56 1.45 -0.10 EURO 1.11 0.98 -8.34 bps change 3 m 6 m

HIBOR 0.39 0.01 0.00 US 10 yield 2.22 0.21 0.50

Source: Bloomberg

HSI Technical HSI 24,352 50 d MA 26,481 200 d MA 25,069 14 d RSI 35 Short Sell (HK$m) 12,684

Source: Bloomberg

BOCOM Int'l Corporate Access

14 Aug Phoenix Healthcare (1515.HK)

We would greatly appreciate your support

in the 2015 Asiamoney Brokers Poll as we

strive to provide value-added research

ideas and corporate access activities. Kindly

vote for the BOCOM International research team at

http://www.globalcapital.com/asiamoney-

brokerspoll.


28 July 2015 Morning Express

We maintain our positive stance on CTEG, given its strong execution on new projects and

robust earnings CAGR of 31% during 2014-17. As a result of the recent 1:4 share split, we

adjust our target price from HK$14.4 to HK$3.60. Maintain Buy.

OOIL (316.HK)

SELL

NeutralLT

BUY

BUY

Stock

OOIL released 2Q15 operating data

Geoffrey CHENG, CFA [email protected]

Last Closing: HK$37.75 Upside: +48.3% Target Price: HK$56.00

What's new?

OOIL released 2Q15 operating data. Total shipping volume was down 2.1% YoY. Total

revenue dropped 9.3% YoY and average revenue declined 7.4% YoY.

Analysis:

The operating data reflected the tough operating environment of the container

shipping industry during the quarter. For OOIL, the more important development

was that OOIL increased its loadable capacity by 7.1% YoY during 2Q15, and the

wrong volume resulted in a 6.8% YoY decline in overall load factor for the period.

In 1H15, volume declined 2.3% YoY and revenue reported a 6.4% YoY drop. As the

loadable capacity increased only 2.8% in 1H15, load factor was down 3.8% YoY. In

short, the loadable capacity increase in 1H15 was largely due to the increase in 2Q15.

Average revenue per TEU was down 4.2% YoY to US$987/TEU, with the most notable

decline from the Asia-Europe tradelane, by 12.6% YoY (18.5% YoY in 2Q15).

While OOIL used to be resilient against freight rate decline amongst its peers, the

magnitude of decline in average freight rate on the Asia-Europe tradelane was still

hefty for OOIL, in our view. We should, however, appreciate the fact that OOIL

tried to reduce the impact by cutting the shipping volume on the Asia-Europe

tradelane by 11.8% YoY in 2Q15 (3.4% YoY in 1H15). The average revenue

performance of the Transpacific tradelane (up 2.0% YoY) was, however, a pleasant

surprise to us.

Recommendation:

We have a LT BUY recommendation for OOIL at the moment.

Notwithstanding the lacklustre average freight rate performance in 1H15, we think

the substantial decline in bunker price during the period could buffer most of the

impact.

Hang Seng Index (1 year)

21,00022,00023,00024,00025,00026,00027,00028,00029,000

Source: Company data, Bloomberg

HS China Enterprise Index (1 year)

8,000

9,000

10,000

11,000

12,000

13,000

14,000

15,000


Shanghai A-shares (1 year)

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500


Shenzhen A-shares (1 year)

1,000

1,500

2,000

2,500

3,000

3,500




Container Shipping Sector Weekly container shipping commentary

Geoffrey CHENG, CFA [email protected]

UP OPMPUP OPMP

Despite the lackluster demand on the Asia-Europe tradelane, capacity on the tradelane is

expected to increase, according to Seaintel, an international maritime analyst. The

Shanghai Container Freight Index spiraled down further, by 7.5% WoW, with various

tradelanes reporting their lowest freight rates of this year. The 2Q15 operating data of

OOIL underlined the tough operating environment of the industry. The stock market

tumbled on 27th July, dragging the valuations of HK-listed container shipping companies

lower. Meanwhile, we maintain our MARKET PERFORM recommendation for the

sector.

Great Wall Motor (2333.HK)

Stock

BUY

LTBUYNeutral

SELL1H15 results in line

Wei YAO [email protected]

Last Closing: HK$27.15 Upside: +16.0% Target Price: HK$31.50

(1) Great Wall Motor achieved sales revenue of RMB37.145bn in 1H15, up 30.2% YoY.

Net profit reached RMB4.901bn, up 24% YoY, with EPS of RMB1.61. The company

achieved net profit of RMB2.37bn in 2Q15, down 6.7% QoQ and up 21.4% YoY. The 1H15

results were generally in line. (2) 2Q15 profit margin improved further. (3) Sales

performance remained to be an important indicator. (4) The additional share issuance

could favor the companys long-term development but pose a dilutive effect in the short

term. (5) Maintain Neutral. Overall, the 1H15 results of Great Wall Motor were solid and

in line with consensus. We expect FY15/16/17E EPS to reach RMB3.33/3.90/4.36. Looking

ahead, we believe H8 and H6 sales are important indicators. Given the intensified

competition in the SUV industry, the companys new and old product sales were weak.

We maintain Neutral on the counter. Given the potential impact of the non-public

additional share issuance on the future EPS and intensified industry competition, we cut

our TP to HK$31.5, equivalent to FY15E 7.5x PE.



Market Review

Hong Kong stocks plummeted on Monday, with the Hang Seng Index losing 776 points, or

3.1%, to finish at 24,351. HKEx (388.HK) slumped 4.9%. Brokers fell, CITIC Securities

(6030.HK) fell 9.1%. Haitong Securities (6837.HK) dropped 10.7%. Insurers retreated.

China Life (2628.HK) was down 5.5%. Ping An (2318.HK) dropped 2.2%. Mainland

developers declined. CR Land (1109.HK) fell 5%. COLI (688.HK) dropped 4.5%. Auto names

declined. Great Wall Motor (2333.HK) dropped 5.7%. BYD (1211.HK) slumped 7.2%.

US and European stocks finished lower. The DJIA fell 127.94 points, or 0.7%, to 17,440.59.

The S&P 500 dropped 12 points, or 0.6%, to 2,067.64. Stoxx Europe 600 dropped 2.2% to

385.91.

News Reaction

China sees around 4% export growth in 2015, SICC says. The State Information Center of

China (SICC) said it expected exports to reverse the negative growth trend and show

about 6.2% growth in 2H15, while the imports may fall by about 4.5%. The full-year

exports may rise by about 4% while imports may fall by about 10.5%.

Industrial profit remains stable; cumulative fall narrows further, NBS says. The

industrial and corporate financial data of the National Bureau of Statistics (NBS) showed

that the total profit of industrial enterprises above the designated size dipped 0.7% YoY

in 1H15, down 0.1 ppt from that of 5M15. In particular, the total profit slipped 0.3% YoY

in June, compared with the 0.6% YoY growth in May. Dr. He Ping, head of the NBS

Industry Division, believed that the fall in industrial profit in June was mainly affected by

three factors.

1H15 power consumption of manufacturing sector up 0.1% YoY, NEA says. According to

media reports, Liu Qi, deputy director of the National Energy Administration (NEA), said

the power consumption in 1H15 was driven by the high-end equipment manufacturing

and light manufacturing sector. The power consumption of manufacturing sector grew

0.1% YoY in 1H15, up 0.2 ppt YoY from 5M15. In particular, the power consumption of

manufacturing sector increased by 0.7% YoY in June, up 0.5 ppt from the previous month.

SSE and SZSE balance of margin trading & securities lending drops to RMB1.45tn last Fri.

Shanghai Composite Index closed down 1.3% last Friday. On the same day, the balance of

margin trading and securities lending in both Shanghai and Shenzhen bourses reduced

RMB930m to approximately RMB1.45tn.

Huawei to lay fiber-optic cables in Guinea, Africa involving US$240m. According to

media reports, Huawei will lay 4,000km of fiber-optic cables in Guinea, Africa over the

next two years to provide high-speed Internet services. According to the Guinean

government statement, the project will cost US$238m and will be completed by 2017. By

then, Guinea will become the first country in West Africa to benefit from such a wide

cable coverage.



Economic releases for this week - USA

Economic releases for this week - China

Date Time Event Survey Prior

27-Jul Durable goods order 3.0% -2.2%

28-Jul Consumer Confidence 100.0 101.4

29-Jul MBA mortgage applications - 0.1%

30-Jul Initial jobless claims (k) - 225.0

Date Time Event Survey Prior

- - - -

Source: Bloomberg

Source: Bloomberg

BOCOM Research Latest Reports

Data Report Analyst

27 Jul 2015 Guangshen Railway (525.HK) - 1H2015 operating data - freight performance worsened, passenger operation lackluster

Geoffrey Cheng, CFA

27 Jul 2015 GOME (493.HK) - Acquisition of stores from major shareholder improves efficiency; TP pared; Buy maintained

Anita Chu

24 Jul 2015 Biostime (1112 HK) Prolonged price competition; Downgrade to SELL Summer Wang

24 Jul 2015 Daphne (210.HK) - Another year of profit warning; escalating pressure on destocking/store closure serves as a major downside risk

Phoebe Wong, CPA

24 Jul 2015 Transportation Sector - Weekly transportation news wrap Geoffrey Cheng, CFA, Fay Zhou

23 Jul 2015 Financial Sector - Banking Sector - Clean politics: The biggest positive driver for the banking sector and the market

Yang Qingli

23 Jul 2015 China Property Sector - Market volatility does not alter property uptrend Philip Tse, CFA FRM, Alfred Lau, CFA, FRM

22 Jul 2015 D&G Technology Holding Company (1301.HK) - Initiate at BUY; Good catalysts from national strategies Fay Zhou, Geoffrey Cheng, CFA

22 Jul 2015 Sa Sa (178.HK) - Pressured 1Q; softening outlook sustained Phoebe Wong, CPA

21 Jul 2015 Far East Consortium (35.HK) - Big step of transformation Alfred Lau, CFA, FRM

21 Jul 2015 Container Shipping Sector - Weekly container shipping commentary Geoffrey Cheng, CFA

21 Jul 2015 Sohu (SOHU.US) - 2Q15 preview: Sogou became profitable; video continues to incur losses Ma Yuan (Martina), Ph.D, Gu Xinyu (Connie), CPA

20 Jul 2015 Vinda (3331 HK) - Outperformance continues; raise TP to HK$20.00 Summer Wang

17 Jul 2015 China Property Sector - Painful cost for late comers Philip Tse, CFA, FRM, Alfred Lau, CFA, FRM

17 Jul 2015 Transportation Sector - Weekly transportation news wrap Geoffrey Cheng, CFA, Fay Zhou

17 Jul 2015 Phoenix Healthcare Group (1515.HK) - Well positioned for China's public hospital industry David Li

16 Jul 2015 Parkson (3368.HK) - Acquisition of Parkson Retail Asia expands foothold in SE Asia; Lower TP and maintain Neutral

Anita Chu

16 Jul 2015 Luk Fook Holdings (590.HK) - Recovery further pushed back Phoebe Wong, CPA

15 Jul 2015 Consumer Discretionary Sector Better Jun sales, but more pressure on discretionary sales Phoebe Wong, CPA

15 Jul 2015 Beijing Enterprises Water Group (371.HK) Strong project acquisition pipeline YTD Wallace Cheng

14 Jul 2015 Container Shipping Sector - Weekly container shipping commentary Geoffrey Cheng, CFA

Source: Company data, BOCOM International



Hang Seng Index Constituents

Company BBG Share Mkt 5 d Ytd 52-week PE Yield P/B

name code price cap chg chg Hi Lo 2014A 2015E 2016E

(HK$) (HK$m) (%) (%) (HK$) (HK$) (X) (X) (X) (%) (X)

CKH HOLDINGS 1 HK 111.30 429,582 -3.22 48.29 125.00 71.77 4.79 13.81 11.68 3.28 0.65

CLP HOLDINGS 2 HK 65.10 164,472 -1.29 -3.20 69.85 61.80 14.66 15.24 14.52 4.02 1.87

HONG KG CHINA GS 3 HK 15.68 181,313 -1.63 -2.88 17.27 15.00 25.33 23.40 21.75 2.03 3.45

WHARF HLDG 4 HK 50.05 151,703 -4.94 -10.63 63.90 48.00 4.22 12.79 11.53 3.62 0.50

HSBC HLDGS PLC 5 HK 67.75 1,323,980 -4.31 -8.45 84.40 64.35 12.85 10.38 9.98 5.61 0.90

POWER ASSETS 6 HK 70.05 149,505 -1.55 -6.91 82.80 64.05 19.40 18.24 18.10 3.84 1.23

HANG SENG BANK 11 HK 154.30 294,997 -0.13 19.43 161.50 123.20 19.51 13.96 15.28 3.63 2.12

HENDERSON LAND D 12 HK 51.55 170,382 -3.01 4.43 59.46 42.46 10.09 16.95 16.49 1.94 0.71

HUTCHISON 13 HK N/A N/A N/A N/A 119.40 85.90 N/A 15.32 13.61 N/A N/A

SHK PPT 16 HK 119.70 344,265 -3.70 1.18 137.60 106.30 10.83 16.02 13.87 2.80 0.78

NEW WORLD DEV 17 HK 9.19 82,682 -3.97 3.03 11.00 8.52 6.91 11.50 10.77 4.57 0.49

SWIRE PACIFIC-A 19 HK 98.45 143,248 -1.94 -2.52 109.80 90.20 13.38 13.82 12.68 3.96 0.68

BANK EAST ASIA 23 HK 31.35 82,016 -5.43 0.32 35.85 29.00 10.93 12.44 11.57 3.54 1.07

GALAXY ENTERTAIN 27 HK 33.65 143,229 -2.89 -22.34 66.16 29.40 13.92 19.67 17.61 0.00 3.72

MTR CORP 66 HK 34.45 201,479 -2.13 8.33 40.00 29.85 12.81 19.42 19.71 3.05 1.23

SINO LAND 83 HK 11.94 72,645 -3.55 -4.63 14.20 11.04 9.38 13.93 13.16 4.19 0.64

HANG LUNG PPT 101 HK 21.90 98,232 -2.67 0.69 26.45 19.86 8.39 15.41 15.85 3.47 0.74

KUNLUN ENERGY 135 HK 6.79 54,812 -5.83 -7.37 13.86 6.48 9.77 11.00 9.20 2.95 1.04

CHINA MER HOLD 144 HK 27.45 71,009 -7.73 5.17 37.00 23.05 17.16 14.89 13.40 2.81 1.04

WANT WANT CHINA 151 HK 8.00 105,054 -4.65 -21.72 11.16 7.20 21.96 19.47 17.80 2.34 6.64

CITIC 267 HK 13.52 336,693 -1.89 2.27 16.88 11.64 6.47 6.28 5.87 1.59 0.81

CHINA RES ENTERP 291 HK 23.80 57,909 0.21 46.55 26.15 14.04 N/A 109.17 57.49 1.13 1.18

CATHAY PAC AIR 293 HK 19.00 74,743 -2.86 12.43 20.80 13.56 23.72 10.68 9.49 1.89 1.45

TINGYI 322 HK 14.94 83,722 -4.35 -15.69 23.25 13.50 28.47 22.41 19.67 1.85 3.44

SINOPEC CORP-H 386 HK 5.79 897,884 -5.39 -7.36 8.23 5.75 N/A 15.78 10.40 N/A N/A

HKEX 388 HK 209.20 250,504 -9.52 21.84 311.40 162.00 43.86 27.25 23.80 1.90 10.69

LI & FUNG LTD 494 HK 5.93 49,904 -4.20 -17.51 10.48 5.80 11.85 13.91 12.14 5.75 2.46

CHINA OVERSEAS 688 HK 25.25 248,980 -6.31 9.54 34.05 19.80 7.46 7.91 6.93 2.18 1.55

TENCENT 700 HK 145.60 1,365,357 -6.37 29.42 171.00 104.50 44.52 34.91 26.76 0.25 12.39

CHINA UNICOM 762 HK 10.56 252,881 -3.30 1.54 16.00 9.68 17.11 15.16 13.41 2.36 0.88

LINK REIT 823 HK 44.85 102,858 -2.29 -7.62 53.65 42.40 3.79 22.55 21.08 4.08 0.87

CHINA RES POWER 836 HK 19.26 92,436 -6.05 -3.70 24.90 17.60 9.92 7.49 7.33 4.05 1.31

PETROCHINA-H 857 HK 7.47 2,657,459 -6.27 -13.14 11.70 7.40 13.76 18.70 11.97 7.09 0.93

CNOOC 883 HK 9.37 418,347 -6.86 -10.25 15.88 9.36 5.58 14.41 8.45 6.04 0.88

CCB-H 939 HK 6.28 1,581,183 -3.68 -1.41 7.98 5.34 5.47 5.39 5.14 5.98 0.96

CHINA MOBILE 941 HK 96.70 1,979,935 -1.53 6.85 118.00 84.05 14.37 14.41 13.52 2.98 1.85

LENOVO GROUP 992 HK 8.72 96,867 -7.43 -14.51 14.30 8.61 14.48 11.84 9.87 3.04 3.06

HENGAN INTL 1044 HK 85.50 104,687 -3.88 5.49 107.40 74.05 26.81 22.98 20.02 2.34 5.94

CHINA SHENHUA-H 1088 HK 14.52 415,706 -7.16 -36.73 24.40 14.40 7.07 8.19 7.73 N/A 0.78

CHINA RES LAND 1109 HK 22.00 152,481 -5.38 7.58 29.10 15.78 8.72 10.30 8.82 2.25 1.33

COSCO PAC LTD 1199 HK 9.76 28,706 -3.37 -11.43 12.80 9.00 12.09 11.05 10.24 3.18 0.77

AIA 1299 HK 49.05 590,924 -3.06 13.67 58.20 39.10 18.61 19.96 18.03 1.07 2.40

ICBC-H 1398 HK 5.44 2,094,062 -4.06 -3.89 7.10 4.74 5.58 5.55 5.30 N/A 0.99

BELLE INTL 1880 HK 8.09 68,233 -4.15 -7.22 12.26 7.60 11.23 10.91 10.16 5.25 2.19

SANDS CHINA LTD 1928 HK 32.55 262,643 1.40 -14.68 58.65 25.90 15.81 20.39 19.62 6.12 5.27

PING AN-H 2318 HK 47.15 845,441 -1.92 19.22 62.90 28.53 13.11 12.81 11.81 N/A 2.19

BOC HONG KONG HO 2388 HK 30.85 326,170 -4.49 18.88 33.70 23.85 13.27 11.97 10.86 3.63 1.85

CHINA LIFE-H 2628 HK 29.05 942,564 -7.04 -4.60 41.00 21.00 20.42 14.53 12.71 1.72 2.32

BANKCOMM-H 3328 HK 6.93 579,178 -3.08 -4.28 8.61 5.29 6.21 6.33 6.20 4.86 0.84

BANK OF CHINA-H 3988 HK 4.29 1,576,659 -3.81 -1.83 5.68 3.42 5.62 5.74 5.46 5.53 0.90

Hang Seng Index 24,352 14,772,445 -4.1 3.2 28,588.5 22,529.8 10.5 11.8 10.7 3.4 1.3

Source: Bloomberg



China Ent Index Constituents

Company BBG Share Mkt 5 d Ytd 52-week PE Yield P/B

name code price cap chg chg Hi Lo 2014A 2015E 2016E

(HK$) (HK$m) (%) (%) (HK$) (HK$) (X) (X) (X) (%) (X)

TSINGTAO BREW-H 168 HK 42.35 59,444 -5.68 -19.49 64.00 42.00 23.81 21.71 19.77 N/A 2.88

JIANGXI COPPER-H 358 HK 10.32 53,947 -6.69 -22.41 18.50 9.65 9.86 13.38 11.36 2.42 0.63

SINOPEC CORP-H 386 HK 5.79 897,884 -5.39 -7.36 8.23 5.75 N/A 15.78 10.40 N/A N/A

CHINA RAIL GR-H 390 HK 6.80 340,761 -8.23 6.58 12.30 3.98 11.19 10.00 8.93 1.43 1.22

DONGFENG MOTOR-H 489 HK 8.89 76,597 -4.92 -19.03 15.20 8.79 4.78 4.89 4.48 2.81 0.83

CHINA TELECOM-H 728 HK 4.33 350,437 -2.26 -4.63 6.17 3.84 15.77 13.99 12.62 2.19 0.97

AIR CHINA LTD-H 753 HK 8.76 203,340 0.00 39.71 10.20 4.54 22.61 10.40 9.59 0.74 1.70

PETROCHINA-H 857 HK 7.47 2,657,459 -6.27 -13.14 11.70 7.40 13.76 18.70 11.97 7.09 0.93

HUANENG POWER-H 902 HK 9.38 165,986 -2.49 -10.50 11.90 8.23 9.89 7.97 8.12 5.06 1.55

ANHUI CONCH-H 914 HK 24.05 122,308 -4.56 -17.21 34.15 22.55 9.26 10.02 9.14 3.37 1.55

CHINA LONGYUAN-H 916 HK 8.75 70,318 -4.68 8.43 11.36 7.12 19.64 15.27 13.13 0.85 1.70

CCB-H 939 HK 6.28 1,581,183 -3.68 -1.41 7.98 5.34 5.47 5.39 5.14 5.98 0.96

CITIC BANK-H 998 HK 5.65 414,987 -4.07 -9.16 7.40 4.66 5.19 5.12 4.80 N/A 0.78

SHANDONG WEIG-H 1066 HK 5.10 22,829 -3.41 -18.53 8.92 4.11 16.87 15.54 13.27 1.62 1.86

CHINA SHENHUA-H 1088 HK 14.52 415,706 -7.16 -36.73 24.40 14.40 7.07 8.19 7.73 N/A 0.78

SINOPHARM-H 1099 HK 30.35 83,981 -4.56 10.56 41.75 22.00 21.91 18.42 15.24 1.27 2.46

BYD CO LTD-H 1211 HK 32.80 127,482 -10.26 8.07 62.30 18.70 146.00 33.78 27.12 0.00 2.57

ABC-H 1288 HK 3.55 1,360,596 -3.27 -9.44 4.55 3.38 5.09 5.03 4.79 6.40 0.82

NEW CHINA LIFE-H 1336 HK 35.70 152,298 -7.27 -8.81 56.55 26.20 13.95 9.96 8.98 0.73 1.85

PICC GROUP-H 1339 HK 3.98 168,847 -6.57 9.64 5.85 3.10 10.29 8.91 8.28 0.30 1.46

CHINA CINDA-H 1359 HK 3.54 128,349 -6.84 -6.35 5.23 3.20 8.60 6.66 5.55 3.47 1.10

ICBC-H 1398 HK 5.44 2,094,062 -4.06 -3.89 7.10 4.74 5.58 5.55 5.30 N/A 0.99

CHINA COM CONS-H 1800 HK 10.18 261,327 -5.39 9.11 17.00 5.45 9.46 8.63 7.66 2.11 1.13

CHINA COAL ENE-H 1898 HK 3.70 110,343 -4.64 -23.87 5.60 3.45 251.32 N/A 156.03 0.81 0.45

MINSHENG BANK-H 1988 HK 8.82 383,877 -3.50 -13.53 11.88 6.97 5.39 5.30 4.95 2.62 1.01

CHINA VANKE-H 2202 HK 18.46 196,583 -2.64 6.71 21.60 13.36 10.34 8.90 7.62 3.38 1.85

GUANGZHOU AUTO-H 2238 HK 6.13 113,362 -5.40 -13.17 9.60 5.78 9.89 8.68 7.08 3.26 0.89

PING AN-H 2318 HK 47.15 845,441 -1.92 19.22 62.90 28.53 13.11 12.81 11.81 N/A 2.19

PICC P&C-H 2328 HK 15.76 233,697 0.25 4.51 20.15 11.45 12.14 10.72 10.21 2.14 2.18

GREAT WALL MOT-H 2333 HK 27.15 114,942 -7.65 -38.44 60.70 26.50 8.23 6.39 5.39 3.68 1.98

WEICHAI POWER-H 2338 HK 10.70 53,276 -1.65 -34.56 18.20 9.72 6.83 9.47 8.24 1.46 1.06

GREAT WALL MOT-H 2333 HK 27.15 114,942 -7.65 -38.44 60.70 26.50 8.23 6.39 5.39 3.68 1.98

CHINA PACIFIC-H 2601 HK 33.35 290,360 -2.63 -15.36 47.10 26.55 21.84 15.77 14.17 1.87 2.07

CHINA LIFE-H 2628 HK 29.05 942,564 -7.04 -4.60 41.00 21.00 20.42 14.53 12.71 1.72 2.32

CHINA OILFIELD-H 2883 HK 9.85 92,513 -5.11 -26.82 23.40 9.73 5.01 11.23 9.05 6.08 0.80

CHINA NATL BDG-H 3323 HK 5.95 32,124 -6.89 -21.09 9.85 5.69 4.32 5.39 4.99 3.46 0.63

BANKCOMM-H 3328 HK 6.93 579,178 -3.08 -4.28 8.61 5.29 6.21 6.33 6.20 4.86 0.84

CM BANK-H 3968 HK 20.10 522,241 -5.19 3.29 26.85 13.12 7.25 6.62 5.96 4.16 1.29

BANK OF CHINA-H 3988 HK 4.29 1,576,659 -3.81 -1.83 5.68 3.42 5.62 5.74 5.46 5.53 0.90

CITIC SEC-H 6030 HK 21.00 311,971 -10.26 -28.08 40.50 16.30 13.33 10.95 9.73 N/A 1.78

HAITONG SECURI-H 6837 HK 13.66 220,792 -10.37 -30.02 27.90 11.50 13.68 8.52 8.02 2.28 1.53

Hang Seng China Ent Indx 11,231 4,643,366 -4.61 -6.29 14,962.74 10,097.35 8.12 8.06 7.34 3.75 1.14

Source: Bloomberg



BOCOM International

11/F, Man Yee Building, 68 Des Voeux Road, Central, Hong Kong

Main: + 852 3710 3328 Fax: + 852 3798 0133 www.bocomgroup.com

Rating System

Company Rating Sector Rating

Buy: Expect more than 20% upside in 12 months Outperform (OP): Expect more than 10% upside in 12 months

LT Buy: Expect more than 20% upside but longer than 12 months Market perform (MP): Expect low volatility

Neutral: Expect low volatility Underperform (UP): Expect more than 10% downside in 12 months

Sell: Expect more than 20% downside in 12 months

Research Team

Head of Research @bocomgroup.com @bocomgroup.com

Raymond CHENG, CFA, CPA, CA (852) 2977 9393 raymond.cheng

Strategy Economics

Hao HONG, CFA (852) 2977 9384 hao.hong Miaoxian LI (86) 10 8800 9788 - 8043 miaoxian.li

Banks/Network Financials Oil & Gas/ Gas Utilities

Qingli YANG (852) 2977 9212 yangqingli Fei WU (852) 2977 9392 fei.wu

Shanshan LI, CFA (86) 10 8800 9788 - 8058 lishanshan Tony LIU (852) 2977 9390 xutong.liu

Li WAN, CFA (86) 10 8800 9788 - 8051 Wanli

Consumer Discretionary Property

Phoebe WONG, CPA (852) 2977 9391 phoebe.wong Alfred LAU, CFA, FRM (852) 2977 9235 alfred.lau

Anita CHU (852) 2977 9205 anita.chu Philip TSE, CFA, FRM (852) 2977 9220 philip.tse

Luella GUO (852) 2977 9211 luella.guo

Consumer Staples Renewable Energy

Summer WANG (852) 2977 9221 summer.wang Louis SUN (86) 21 6065 3606 louis.sun

Shawn WU (852) 2977 9386 shawn.wu

Environmental Services Telecom & Small/ Mid-Caps

Wallace CHENG (852) 2977 9387 wallace.cheng Zhiwu LI (852) 2977 9209 lizhiwu

Healthcare Transportation & Industrial

David LI (852) 2977 9203 David.Li Geoffrey CHENG, CFA (852) 2977 9380 geoffrey.cheng

Fay ZHOU (852) 2977 9381 fay.zhou

Insurance & Brokerage Automobile

Jerry LI (852) 2977 9389 liwenbing Wei YAO (86) 21 6065 3675 wei.yao

Jennifer ZHANG (852) 2977 9250 yufan.zhang

Internet

Yuan MA, PhD (86) 10 8800 9788 - 8039 yuan.ma

Connie GU, CPA (86) 10 8800 9788 - 8045 conniegu

Mengqi Sun (86) 10 8800 9788 - 8048 mengqi.sun



Analyst Certification The authors of this report, hereby declare that: (i) all of the views expressed in this report accurately reflect their personal views about any and all of the subject securities or issuers; and (ii) no part of any of their compensation was, is, or will be directly or indirectly related to the specific recommendations or views expressed in this report; (iii) no insider information/ non-public price-sensitive information in relation to the subject securities or issuers which may influence the recommendations were being received by the authors.

The authors of this report further confirm that (i) neither they nor their respective associates (as defined in the Code of Conduct issued by the Hong Kong Securities and Futures Commission) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to the date of issue of the report; (ii)) neither they nor their respective associates serve as an officer of any of the Hong Kong listed companies covered in this report; and (iii) neither they nor their respective associates have any financial interests in the stock(s) covered in this report.

Disclosure of relevant business relationships BOCOM International Securities Limited, and/or its associated companies, has investment banking relationship with Bank of Communications, China Shengmu Organic Milk Limited, Broad Greenstate International Company Limited, China National Culture Group Limited, Sichuan Development Holding Co. Ltd., Austar Lifesciences Limited, BAIC Motor Corporation Limited, China Huinong Capital Group Limited, D&G Technology Holding Company Limited, Guolian Securities Co. Ltd., GF Securities Co. Ltd., PuraPharm Corporation Limited, Chiho-Tiande Group Limited, Greenland Hong Kong Holdings Limited, Chinasoft International Limited, Forgame Holdings Limited, Legend Holdings Corporation, Peak Sport Products Co. Limited and Hengtai Securities Co. Ltd. within the preceding 12 months.

BOCOM International Securities Limited currently holds more than 1% of the equity securities of Sanmenxia Tianyuan Aluminum Company Limited.

BOCOM International Holdings Company Limited currently holds more than 1% of the equity securities of Chinasoft International Limited.

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The information contained in this report is prepared from data and sources believed to be correct and reliable at the time of issue of this report. This report does not purport to contain all the information that a prospective investor may require and may be subject to late delivery, interruption and interception. BOCOM International Securities Ltd does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information and opinion contained in this report and accordingly, neither BOCOM International Securities Ltd nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.

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The views, recommendations, advice and opinions in this report may not necessarily reflect those of BOCOM International Securities Ltd or any of its affiliates, and are subject to change without notice. BOCOM International Securities Ltd has no obligation to update its opinion or the information in this report.

Investors are advised to make their own independent evaluation of the information contained in this research report, consider their own individual investment objectives, financial situation and particular needs and consult their own professional and financial advisers as to the legal, business, financial, tax and other aspects before participating in any transaction in respect of the securities of company(ies) covered in this report. The securities of such company(ies) may not be eligible for sale in all jurisdictions or to all categories of investors.

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BOCOM International Securities Ltd is a wholly owned subsidiary of Bank of Communications Co Ltd.

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